As entrepreneurs, we can find ourselves riding on an economic roller coaster at times. There are those moments when the coffee gets spilled from our throats when we hear the Dow Jones takes a major dive. Or the neighbors wonder what happened when we are dancing with joy down the street because the price of silver just jumped.
We often live in economic uncertainty and we must manage those uncertain situations with precision.
In today’s post, I am going to give you 6 tips on managing economic uncertainty.
“Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.” George Soros
Managing Economic Uncertainty Tip #1: Do You Really Need Microsoft Office?
Have you examined how much your Microsoft Office program is costing on an annual basis? Is it really a program you must have?
I know, you create spreadsheets, documents and Power Point presentations. All of which are important.
There is a free software that gives all the same benefits. It will even allow you to save your files in the Microsoft Office format or other formats.
You can cut that Office cost with the free Libre Office. See more here.
Managing Economic Uncertainty Tip #2: Reevaluate Your Business Model
Whenever the economy “tumbles” there are always ways a business can still profit. But, it takes careful evaluation.
Let’s just say that your business was buying and reselling expensive homes. But the housing market suddenly tanks.
Do you just give up?
People still need places to live. Have you considered investing in apartments to lease. Or townhouses to sell?
Managing Economic Uncertainty Tip #3: Adjust Pricing
When the costs of inventory, supplies or other expenses rise, you need to also adjust your prices to stay profitable.
No customers will not like it, so add some incentives to keep them buying.
In doing so, monitor your competitor’s pricing too.
By keeping a close eye on the numbers, economic uncertainty won’t leave you sitting in the blind.
Managing Economic Uncertainty Tip #4: Practice Stoicism
“What really frightens and dismays us is not external events themselves, but the way in which we think about them. It is not things that disturb us, but our interpretation of their significance.” Epictetus
Stoicism is an ancient philosophy that taught to be happy, we must accept the moment and not be controlled by fear of the unknown.
Modern Stoicism as I am speaking about here just simply means focusing on only the things you can control. And I mean total control, not partial.
Let’s just use an example with you playing golf. You could set a goal of
- Getting 3 birdies in 18 holes – But you do not have total control of that.
- Golfing a 72 or less in all 18 holes – Again, you do not have full control.
- Playing the best you can and having fun – Now this you have total control of.
The idea is to not allow your emotions to be ruled by outcomes… That is Modern Stoicism, and I believe entrepreneurs should practice it even when economic times are certain (are they ever?).
Managing Economic Uncertainty Tip #5: Surround Yourself With Wise, Positive People
Someone (I don’t recall who) once said, “show me the 3 people you hang out with the most, and I will tell you if you will be successful.”
While I don’t know if I completely agree with that statement, I will say that the people you spend the most time with have a huge influence on your decisions and your overall mindset.
I suggest that you find the people in your life that are extremely positive and wise… Spend more time with those people.
Managing Economic Uncertainty Tip #6: Get The Most Out Of Social Media Marketing
Social Media is the entrepreneurs method of creating the expensive Super Bowl commercial, without the expense.
Using proper methods, you can gain brand popularity and sales using sites like
- Google+
- and more
If you are not yet using social media marketing methods, you are leaving money on the table.
Just use it properly!
Conclusion
I slipped it in earlier but if you didn’t catch it, I will say it again… No matter how good the economy is, it is always uncertain.
So it is your responsibility to use wisdom and manage your business accordingly.
To help you, I developed a tool that will help you track expenses and find tax deductions. I know you will be extremely happy with this tool.
Find out more about the Expense Tracker here and sign up for the free trial.
Well, until next time my friends, thanks for stopping by!
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